Richard Branson's Virgin Stores in France filing for bankruptcy
Associated Press :Paris, Jan 09 2013, 10:37 IST
The Virgin Stores chain in France, which includes the flagship Megastore on Paris' famed Champs-Elysees, plans to file for bankruptcy.
Virgin Stores, which sells music and books, said Tuesday it will make the filing Wednesday. The Tribunal of Commerce will appoint an administrator with 4-6 months to find a solution.
The announcement came after two days of meetings between representatives of the 26-store chain's 1,000 employees and store officials. A representative of the main shareholder, Butler Capital Partners, was present.
Virgin Store spokeswoman Isabelle Clap said the chain had been hurt by a "series of problems that accumulated.'' As sales of CDs declined, the chain failed to expand in digital markets quickly enough.
Clap confirmed Virgin Megastore hasn't paid rent in 3 months but refused to provide overall debt figures.
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